VC is great for anything that doesn't need continuous cooperation from more than 1 domain of expertise, or where no expertise is even needed at the outset. Meritocracy, but atomized meritocracy.
Hence, great for software (and certain Schwerpunkte in hardware scaling) --- not innovation in general, but in fact solidifying a technological caste system: designers > SWE > HWE > every other kind of technical expert
Otherwise, you do need a Bell Labs to make sure your various experts are talking to one another and not constantly in fear of backstabbing by the management, their interns, other experts. (Especially considering in universities these days, rival groups in the same department have to make the same kind of calculations before cooperating)
I can see that YC does pay lip service to building community and such, but perhaps VC is too successful for its own good.
Hence, great for software (and certain Schwerpunkte in hardware scaling) --- not innovation in general, but in fact solidifying a technological caste system: designers > SWE > HWE > every other kind of technical expert
Otherwise, you do need a Bell Labs to make sure your various experts are talking to one another and not constantly in fear of backstabbing by the management, their interns, other experts. (Especially considering in universities these days, rival groups in the same department have to make the same kind of calculations before cooperating)
I can see that YC does pay lip service to building community and such, but perhaps VC is too successful for its own good.